SUPPORTING STATEMENT FOR THE

RENEWABLE FUELS STANDARD (RFS2) PROGRAM (FINAL RULE)

A. JUSTIFICATION

1. Identification of the Information Collection

a. Title: Renewable Fuels Standard (RFS2) Program, EPA ICR No. 2333.02, OMB 

Control Number 2060-NEW.

b. Short characterization:

The Energy Policy Act (EPAct) of 2005 amended the Clean Air Act, section 

211(o), and required the existing RFS program. The existing RFS program is referred to 

in this supporting statement as "RFS1". The RFS1 program started in 2006 and was 

covered by EPA ICR No. 2242.02, OMB Control Number 2060-0600. Please refer to 

“Regulation of Fuels and Fuel Additives: Renewable Fuel Standard Program – Notice of 

Proposed Rulemaking” and “Regulation of Fuels and Fuel Additives: Renewable Fuel 

Standard Program – Final Rule” (both available in docket number EPA-HQ-OAR-2005-

0161) for a detailed discussion of the RFS1 program. 

The Energy Independence and Security Act (EISA) of 2007 further amends the 

Clean Air Act, section 211(o), and has required EPA to propose new regulations for 

renewable fuels. The new RFS program is referred to in this supporting statement as 

"RFS2." Under RFS2, the volume requirement and types of renewable fuels are 

expanded; non-road uses are included (RFS1 only affected motor vehicle fuel); there are 

additional types of waivers and special provisions for renewable fuel types; and EPA will 

implement an EPA-Moderating Transaction System (EMTS) for RINs. Additional 

parties will be required to register, keep records, and report. Please refer to the Final 

Rule (available in docket number EPA-HQ-OAR-2005-0161) for a detailed discussion of 

the RFS2 program. 

For compliance purposes, under both RFS1 and RFS2, volumes of renewable fuel 

are identified through the use of renewable identification numbers (RINs) that are 

initially generated by the producer of the renewable fuel. However, under RFS2, there 

are additional types of RINs and the volume of RINs traded is expected to be greater. 

This supporting statement provides tables that break down reporting items by

party (e.g. producer, importer, refiner, etc.) Parties who are interested in recordkeeping 

and reporting burden will want to review the tables containing our estimates carefully. 

The RFS2 program includes provisions for EMTS for RINs, which was not a feature of 

RFS1. It also includes third-party disclosure provisions applicable to biofuel feedstock 

producers , who were not covered by recordkeeping and reporting under RFS1. 
The Regulatory Impact Analysis (RIA), which was prepared for the Final Rule, 

has been placed in the public docket. This document was consulted to provide additional 

detailed information about the regulated universe (see Chapter 1 of the draft RIA). We 

also considered the actual number of reporting parties under RFS1 and similar reporting 

programs.

 

2. Need For, and Use of, the Collection

a. Authority for the Collection

Sections 114 and 208 of the Clean Air Act (CAA), 42 U.S.C. §§ 7414 and 7542, 

authorize EPA to require recordkeeping and reporting regarding enforcement of the 

provisions of Title II of the CAA. 

b. Practical Utility/Uses of the Data

The recordkeeping and reporting requirements of this regulation will allow EPA 

to monitor compliance with the RFS program.

3. Non-duplication, Consultation, and other Collection Criteria

a. Non-duplication

Efforts have been made to eliminate duplication in this information collection. 

b. Public Notice

EPA sought comment on reporting requirements via the NPRM. We also 

docketed a copy of our draft ICR supporting statement based upon the NPRM. 

c. Consultations

We have drawn upon our experience with RFS1 and with similar fuels regulations 

to develop the estimates in this supporting statement. Interested parties may also be 

interested in reviewing "Chapter 1 – Industry Characterization" of the draft Regulatory

Impact Analysis (RIA) available in the public docket. Some assumptions from the RIA 

were used for this supporting statement.

d. Effects of Less Frequent Data Collection

We have designed the reporting schedule to coincide with existing reporting 

deadlines applicable to many of the same parties under such programs as RFG and antidumping and diesel fuel. Less frequent collection of data would make it impossible to 

carry out the provisions of the CAA and EISA. 

e. General Guidelines
This rule does not exceed any of the OMB guidelines.

f. Confidentiality

We inform respondents that they may assert claims of business confidentiality

(CBI) for information they submit. Under RFS2, actual RINs should not be treated as 

confidential business information under RFS2, as they are necessary identifiers to 

accompany renewable fuels. Any information claimed as confidential will be treated in 

accordance with 40 CFR Part 2 and established Agency procedures. Information that is 

received without a claim of confidentiality may be made available to the public without 

further notice to the submitter under 40 CFR § 2.203.

g. Sensitive Information

This information collection does not require submission of any sensitive 

information.

4. The Respondents and the Information Requested

a. Respondents/with NAICS and SIC Codes

The respondents to this information collection fall into the following general 

industry categories: petroleum refineries (324110/2911), ethyl alcohol manufacturers 

(325193/2869), other basic organic chemical manufacturing (325110/2869), chemical and 

allied products merchant wholesalers (426990/5169), petroleum bulk stations and 

terminals (422710/5171), petroleum and petroleum products merchant wholesalers 

(422720/5172), and other fuel dealers (454319/5989). 

Using the terminology associated with the RFS2 Final Rule, we have 

assumed the following classes of party, with the number of each in parenthesis:

 Producers of renewable fuels (1010, of which 310 are biodiesel producers)

 Importers (120)

 Obligated Parties (450, of which 400 are refineries and 50 exporters)

 Parties who own RINs (1500)

 Foreign Refiners (10)

 Foreign RIN Owners (5)

[Note: The above estimates are derived from the number of registered parties as 

of December 17, 2009, rounded up. The number of biodiesel producers is the 

number registered as of January 11, 2010, rounded up.]

For biofuel feedstock producers, we have assumed the following classes of party, 

with the number of each in parenthesis:

 1,000,000 plantation and private forest owners
 30,966 foreign biofuel feedstock producers

[Note: The above estimates are derived from the following sources: A 

presentation given by Brent Butler, United States Forest Service, entitled “Private 

Forest Owners: Past Present, and Future,” dated October 23-27, 2009 estimates a 

10,000,000 population of plantation and private forest owners. We have assumed 

10% participation in RFS2. We estimated the number of foreign biofuel 

feedstock producers to be 30,000, which is 3% of the total of domestic feedstock 

producers (i.e., 3% of 1,000,000.)]

This supporting statement includes estimates reporting involving biofuel 

feedstock producers, who must provide certain information about their feedstocks 

and source to biofuel producers and to EPA upon request. The RFS2 final rule 

contains provisions requiring recordkeeping/reporting and the mapping of certain 

plots of land (e.g. generating a Google map or similar representation), based upon 

an aggregate baseline approach. Although we expect that this could lead to future

burden on the part of certain biofuel producers who use croplands (i.e., farmers),

we do not expect that any party will be required to engage in recordkeeping and 

reporting activities under this provision until the fourth year of the program or 

later. Therefore, we have not provided an estimate related to this provision, since 

it is not expected to result in any cost during the three year period covered by this 

ICR. Estimates for future recordkeeping and reporting will be provided when the 

recordkeeping and reporting is expected to occur. 

b. Information Requested

A) Reporting: The individual reports required from regulated parties 

are described in the preamble. The following reports are required by the Final Rule: 

annual compliance reports (obligated parties only), quarterly reports regarding generation 

and assignment of RINs (producers and importers only), quarterly RIN reports 

summarizing transactions and activity, and “real time” RIN transactional activity

reporting within EMTS. Reporting items include registration of parties engaged in 

activities covered by the RFS2 regulation and reporting related to transactions involving 

RINs and associated volumes of fuel.

The exact reports filed will depend upon the activity engaged in by the party. A 

party must file reports appropriate for each activity it engages in – for example, if a party 

is both an exporter of renewable fuel and a producer of renewable fuel, then that party

must file the reports applicable to both activities. 

In the Final Rule, we establish hat “real time” reporting within EMTS will be 

construed as within five (5) business days of a reportable event (e.g. generation and 

assignment of RINs, transfer of RINs). This means that some parties may elect to 

“batch” real time reports, similar to how businesses batch credit card transactions at the 

end of the day. We estimate that an average party would report daily, resulting in 365 
instances of reporting in EMTS per year. These estimates are reflected in the tables 

below. 

Quarterly reports are due as follows:

Quarterly Reporting Schedule for RFS2 Program

Quarter Covered by Quarterly Report Due Date for Quarterly Report

January - March May 31

April - June August 31

July - September November 30

October - December February 28

 

Annual reports are due on February 28 for the preceding year. 

For some reports, e.g. involving biofuel feedstock producers (see Table VII), the 

frequency of reporting is “on occasion” (i.e., when a transaction requiring disclosure 

occurs). As discussed above, for EMTS purpose, we have assumed one instance of 

reporting per day for each day of the year. (i.e., 365 instances of reporting).

 

Tables I - VII estimate the recordkeeping and reporting burden by party. We will 

provide respondents the opportunity to engage in simplified, secure, electronic reporting 

via the Agency's Central Data Exchange (CDX) and its exchange network protocol. An 

attachment explaining the exchange network protocol is provided with this supporting 

statement. Respondents must keep copies of all reports filed for five (5) years.

B) Recordkeeping: Respondents must retain underlying records 

related to reports they file for five (5) years. This period is consistent with other fuels 

programs and with customary business practices (CBP) for the industry. Respondents 

must transfer volumes of fuel with product transfer documentation or bills of lading, 

which is already done in the course of business. However, parties will have to actually

develop and include new codes on product transfer documents and this supporting 

statement includes estimates for that burden.

5. The Information Collected, Agency Activities, Collection Methodology, and 

Information Management

a. Agency Activities

 All reports and registrations will be reviewed by EPA for completeness and 

for potential violations.
 Potential violations will be referred to enforcement personnel.

 Registration numbers will be issued for new registrants. 

 Contacting reporting parties if there is a problem with their submission.

b. Collection and Methodology and Management

We anticipate receiving data in a simplified and secure fashion via the Agency's 

CDX. Information claimed as CBI will be stored in appropriately controlled areas.

c. Small Entity Flexibility

This collection will not adversely affect small entities. The Final Rule describes 

flexibility provisions available to small entities. 

d. Collection Schedule

Registrations are received on a rolling basis, as updates may be sent in at any time 

and new parties may enter the regulated industry at any time. Reporting is as-needed, 

monthly, quarterly, and annual.

6. Estimating the Burden and Cost of Collection

a. Estimating the Respondent Universe 

We drew upon experience implementing similar regulations among the same 

entities to develop estimates of the burden associated with this collection. 

b. Estimating the Respondent Burden and Cost

Three labor categories are involved: managerial (includes legal and professional 

review), technical, and clerical. The estimates use the Bureau of Labor Statistics figures 

from "Employer Costs for Employee Compensation - Table 12 - Private Industry, 

Manufacturing, and Non-Manufacturing Industries by Occupational Group” (December 

2003), with a 3% annual inflation factor applied to bring the values to the present. Using 

this method, the following wages and benefits apply by category:

Wages and Benefits

Managerial $53.87 per hour

Technical $35.29 per hour

Clerical $24.56 per hour

Doubling for company overhead beyond wages and benefits, and for convenience, 

rounding up to the dollar, gives the following rates for this ICR:
Total Employer Cost

Managerial $108 per hour

Technical $71 per hour

Clerical $49 per hour

It is assumed that for each hour of activity the mix will be about 0.1 hour managerial, 0.7 

hour technical, and 0.2 hour clerical. This gives an average labor cost of $71 per hour, 

which will be used in this ICR. For purchased services related to attest engagements and 

some items of registration, we have doubled this hourly cost to $142 in order to more 

accurately reflect the cost of a certified public accountant's (CPA) or licensed 

professional engineer's (PE) services. 

c. Estimating the Agency Burden and Cost 

EPA must generate company and facility registration number(s) for new 

registrants and notify them of these numbers, which must appear on reports. Report 

formats and instructions/guidance must be prepared by Agency personnel. Reports will 

be processed by contractors and must be reviewed by Agency personnel. Reporting 

parties must be contacted if there is a problem with their submission.

We anticipate that many of our activities related to RFS2 will be similar to that of 

RFS1. We have not yet developed forms for RFS2, but have attached RFS1 forms which 

will be used in the first year of RFS2. The RFS2 reporting templates would not be very

different, except that reporting would include four types, rather than one type, of RIN. 

We have provided RFS1 reporting templates as an attachment to this document.

This supporting statement considers costs associated with accepting new 

registrants and new reports associated with RFS2. Using the RFS1, and the RFG and antidumping ICR, and other recent fuels-related ICRs as a guide in developing these initial 

estimates for RFS, we anticipate that RFS2 may require the equivalent labor of one full 

time GS-13 technical employees for a total of $161,000, and labor costs of $76,000 in the 

clerical category and $28,000 in the management category.

1

 Since we are using the 

CDX, some costs incurred by the Agency will be tied to the number of registrants who 

send us reports. Specifically, there is an annual "subscription cost" associated with the 

use of CDX that is passed on to the EPA program office and we estimate that registrants 

due to RFS2 will cost our office approximately $200,000 per year in 2010, 2011 and 

2012. We anticipate $266,666 in annual contract costs related to registration and 

reporting activities. We anticipate IT development and testing costs at $2,200,000 

 

1

 These estimates are derived from "OPM Salary Table 2006-DCB," effective January 2006. This table 

may be found at http://www.opm.gov/oca/06tables/indexGS.asp. The extreme of step 10 was assumed for 

all categories. We have assumed a half-time GS-7 clerical worker, one full-time GS-13 technical worker, 

and a GS-15 manager working one-eighth of his/her time managing this project (0.125). All values were 

multiplied by 1.6 (which is a common factor utilized in ICRs to account for overhead costs). We rounded 

the resulting dollar value to the nearest thousand. This cost is per year.
divided by three years to yield an annual cost of $733,333. Adding the following values 

results in an annual estimated Agency burden as follows:

One GS-13 technical employee (full time) = $161,000

One GS-7 clerical worker (half time) = 76,000

One GS-15 manager (1/8 time) = 28,000

Annual CDX subscription fee = 200,000

Annual contract costs = 266,666

Testing and development= 733,333

TOTAL = $1,464,999

 As with all items in this supporting statement, we strongly encourage comment 

on the estimated Agency burden and on the Agency activities associated with this 

proposed information collection. 

 

d. Estimating the Respondent Universe

We were able to estimate the number of regulated entities drawing upon 

experience regulating the same or similar entities. 

e. Bottom Line Burden Hours and Costs

From the tables, we estimate the following totals:

TOTAL NO. OF RESPONDENTS: 1,060,026

TOTAL NO. OF RESPONSES: 4,781,126

TOTAL BURDEN HOURS: 1,485,008

TOTAL COST TO RESPONDENTS: $ 112,877,105

f. Reason for Change in Burden

The change in burden is due to regulations that give effect to the EISA provisions 

for RFS2.

g. Burden Statement 

The annual public reporting and recordkeeping burden for this collection of 

information is estimated to be 3.2 hours per response (the total number of responses 

divided by the total hours). Burden means the total time, effort, or financial resources 

expended by persons to generate, maintain, retain, or disclose or provide information to 

or for a Federal agency. This includes the time needed to review instructions; develop, 

acquire, install, and utilize technology and systems for the purposes of collecting, 

validating, and verifying information, processing and maintaining information, and 

disclosing and providing information; adjust the existing ways to comply with any

previously applicable instructions and requirements; train personnel to be able to respond 
to a collection of information; search data sources; complete and review the collection of 

information; and transmit or otherwise disclose the information. An agency may not 

conduct or sponsor, and a person is not required to respond to, a collection of information 

unless it displays a currently valid OMB control number. The OMB control numbers for 

EPA's regulations are listed in 40 CFR part 9 and 48 CFR chapter 15. 

To comment on the Agency's need for this information, the accuracy of the 

provided burden estimates, and any suggested methods for minimizing respondent 

burden, including the use of automated collection techniques, EPA has established a 

public docket for this ICR under Docket ID number EPA-HQ-OAR-2005-0161, which is 

available for online viewing at www.regulations.gov, or in person viewing at the Air 

Docket in the EPA Docket Center in Washington, DC (EPA/DC). The docket is located 

in the EPA West Building, 1301 Constitution Avenue, NW, Room 3334, and is open 

from 8:30 a.m. to 4:30 p.m., Eastern Standard Time, Monday through Friday, excluding 

legal holidays. The telephone number for the Reading Room is (202) 566-1744, and the 

telephone number for the Air Docket is (202) 566-1742. 

You may use www.regulations.gov to submit or view public comments, access 

the index listing of the contents of the public docket, and to access those documents in 

the public docket that are available electronically. When in the system, select “search,” 

then key in the Docket ID Number EPA-HQ-OAR-2005-0161. Also, you can send 

comments to the Office of Information and Regulatory Affairs, Office of Management 

and Budget, 725 17th Street, NW, Washington, D.C. 20503, Attention: Desk Officer for 

EPA. Please include the EPA Docket ID Number EPA-HQ-OAR-2005-0161 and OMB 

Control Number 2060-NEW in any correspondence.

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